PPI lower than expected this year

Growth in agricultural and manufactured food prices continues to lose momentum, which is reflected in South African headline producer price inflation (PPI) slowing to 5.9% year-on-year in January from an upwardly revised 7.1% in December, says multinational bank BNP Paribas. The January figure came in even lower than the bank’s well below consensus forecast of 6.2%. The January PPI inflation figures are based on Statistics South Africa’s new basket and weights (as per the recent consumer price index basket changes), with the index having been rebased to December last year from December 2012 previously.